Howard G. Buffett has been a board member for 33 years, which Warren said is a longer apprenticeship than he served when he took the reins at 34 years old

Howard Buffett, son of billionaire investor Warren Buffett, and then-U.S. Sen. Heidi Heitkamp (D-ND) attend the annual Allen & Company Sun Valley Conference, July 13, 2018 in Sun Valley, Idaho. Howard Buffett is now chairman of Berkshire Hathaway.

Warren Buffett, the investing legend that turned Berkshire Hathaway into an massive conglomerate, on Friday stepped aside as chairman after leaving as CEO at the beginning of the year.

While Warren will continue to have some say, but in his own words, the move completes the transition out of the spotlight.

What it does for the company is, put the CEO Greg Abel fully in the driver's seat, said Mike O'Rourke, chief market strategist at JonesTrading and a noted Buffett watcher.

"The long-established succession planning is coming to fruition," O'Rouke said. "It should not be a surprise, but we hate to see the greatest investor easing his way out."

Berkshire Hathaway (BRK.B) $(BRK.A)$ said the 96-year-old Buffett has been named chairman emeritus, effective immediately, while his son Howard will become chairman.

Howard Buffett has been a Berkshire director since 1993. The elder Buffett will stay on the board.

"Recently, I celebrated my 96th birthday with family and friends, including one of my great-grandchildren, who had just turned one. He's moving a bit faster than I am these days," said Buffett in a simultaneously released letter.

"I have served Berkshire since 1965. Sixty-plus years in, I still have the best job in the world."

Buffett said CEO Abel has exceeded his "sky-high" expectations. His son, meanwhile, has had 33 years at the firm.

"That is a longer apprenticeship than I served before taking the reins at the age of 34. Greg runs the company; Howard will guard its culture and values - both worth more than anything on our balance sheet. Think of Howard as a policy the shareholders own and hope never to claim against," said Buffett.

Berkshire Hathaway's cheaper and more actively traded 'B' class of shares have underperformed the market this year, rising 1.3% through Thursday, while the S&P 500 SPX has advanced 11.6%.

Its operating earnings over the first half of the year grew 17%.

-Steve Goldstein -Tomi Kilgore